Gore Street Energy Storage Fund secures ‘record prices’ in 2023 T-4 CM auction. Image: Gore Street.

Gore Street Energy Storage Fund has confirmed that it secured “record prices” in the T-4 2023 Capacity Market auction.

The energy storage investment fund confirmed in its financial results that, for the year ended 31 March 2023, the firm’s investment manager managed to secure record prices in the T-4 2023 Capacity Market auction with six sites having been awarded contracts worth £63/kW/year for delivery from October 2026.

These assets based in GB and Ireland are anticipated to deliver a combined value of £45 million – what the firm claims is a record-level T-4 auction pricing.

Of these contracts, Gore secured a 15-year contract for its Middleton site – a 200MW battery energy storage site – that is expected to generate £2.97 million annually in capacity market revenues.

The record prices in the capacity market auction caps off what has been another successful year for Gore Streat Energy Storage Fund which resulted in a net asset value (NAV) increase of 5.9%. This saw the NAV increase from £376.5 million as of 31 March 2022 to £556.3 million as of 31 March 2023.

Along with this, the fund’s portfolio capacity increased by 86.7% (544.6MW) through acquisitions during the financial year. Operational capacity also saw an increase of 25.8% (59.9MW).

“Our entire operational portfolio has been well-placed to capitalise on the seasonal variations in revenues seen across all the markets in which we operate, showcasing the resilience and effectiveness of our diversification strategy. Over the period, we have strategically acquired assets in key markets, further enhancing our operational capacity and expanding our geographic presence,” said Alex O'Cinneide, CEO of Gore Street Capital.

“Over the next twelve months, we are focused on our portfolio along the following areas 1) bringing projects to operation at the lowest cost per MW/MWh fully installed 2) generating the highest revenue per MW/MWh in each of the markets we are competing in 3) utilise our economics of scale to materially increase EBITDA margin 4) creating increased capacity in our existing projects over the original project size.

“We remain fully committed to delivering value and maintaining our position at the forefront of the energy storage sector.”